Quarterly report pursuant to Section 13 or 15(d)

Borrowings (Tables)

v3.23.3
Borrowings (Tables)
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Schedule of Borrowings
Our borrowings as of September 30, 2023, and December 31, 2022, are summarized below (dollars in thousands):
  Carrying Value as of As of September 30, 2023
September 30, 2023 December 31, 2022
Stated Interest
Rates(1)
(Range; Wtd. Avg)
 Maturity Dates
(Range; Wtd. Avg)
Variable-rate revolving lines of credit $ 100  $ 100  7.36% 4/5/2024
Notes and bonds payable:
Fixed-rate notes payable $ 534,539  $ 550,974 
2.45%-5.70%; 3.73%
 9/1/2024–7/1/2051; June 2033
Variable-rate notes payable —  1,104  N/A N/A
Fixed-rate bonds payable 52,658  77,776 
2.66%–4.57%; 3.64%
 01/12/2024–12/30/2030; August 2026
Total notes and bonds payable 587,197  629,854 
Debt issuance costs – notes and bonds payable (3,099) (3,454) N/A N/A
Notes and bonds payable, net $ 584,098  $ 626,400 
Total borrowings, net $ 584,198  $ 626,500 
(1)Where applicable, stated interest rates are before interest patronage (as described below).
The following table summarizes the pertinent terms of the Current MetLife Facility as of September 30, 2023 (dollars in thousands, except for footnotes):
Issuance Aggregate
Commitment		 Maturity
Dates		 Principal
Outstanding		   Interest Rate Terms  
Undrawn
Commitment(1)
MetLife Lines of Credit $ 75,000  4/5/2024 $ 100 
3-month Term SOFR + 2.11%
(2)
 $ 74,900 
2020 MetLife Term Note 75,000 
(3)
 1/5/2030 36,900 
2.75%, fixed through 1/4/2030
(4)
 38,100 
2022 MetLife Term Note 100,000 
(3)
 1/5/2032 —  (4)

100,000 
Totals $ 250,000  $ 37,000  $ 213,000 
(1)Based on the properties that were pledged as collateral under the Current MetLife Facility, as of September 30, 2023, the maximum additional amount we could draw under the facility was approximately $110.3 million.
(2)The interest rate on the MetLife Lines of Credit is subject to a minimum annualized rate of 2.50%, plus an unused fee ranging from 0.10% to 0.20% on undrawn amounts (based on the balance drawn under each line of credit).
(3)If the aggregate commitments under the 2020 MetLife Term Note and the 2022 MetLife Term Note are not fully utilized by December 31, 2024, MetLife has no obligation to disburse the additional funds under either note.
(4)Interest rates on future disbursements under each of the 2020 MetLife Term Note and the 2022 MetLife Term Note will be based on prevailing market rates at the time of such disbursements. In addition, through December 31, 2024, the 2020 MetLife Term Note and the 2022 MetLife Term Note are each subject to an unused fee ranging from 0.10% to 0.20% on undrawn amounts (based on the balance drawn under the respective note).
Schedule of Aggregate Maturities
Scheduled principal payments of our aggregate notes and bonds payable as of September 30, 2023, for the succeeding years are as follows (dollars in thousands):
Period Scheduled Principal Payments
For the remaining three months ending December 31: 2023 $ 4,326 
For the fiscal years ending December 31: 2024 40,829 
2025 39,204 
2026 18,368 
2027 51,592 
2028 78,023 
Thereafter 354,855 
$ 587,197 
Schedule of Borrowings by Type
We had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk as of September 30, 2023, and December 31, 2022 (dollars in thousands):
Period Number of Instruments Aggregate Notional Amount
As of September 30, 2023 4 $ 71,501 
As of December 31, 2022 4 73,392 
The following table presents the fair value of our interest rate swaps as well as their classification on the Condensed Consolidated Balance Sheets as of September 30, 2023, and December 31, 2022 (dollars in thousands):
Derivative Asset (Liability) Fair Value
Derivative Type Balance Sheet Location September 30, 2023 December 31, 2022
Derivatives Designated as Hedging Instruments:
Interest rate swaps Other assets, net $ 10,271  $ 9,007 
Total $ 10,271  $ 9,007 
The following table presents the amount of income recognized in comprehensive income within our condensed consolidated financial statements for the three and nine months ended September 30, 2023 and 2022 (dollars in thousands):
For the Three Months Ended September 30, For the Nine Months Ended September 30,
2023 2022 2023 2022
Derivative in cash flow hedging relationship:
Interest rate swaps $ 1,557  $ 3,199  $ 1,264  $ 10,491 
Total $ 1,557  $ 3,199  $ 1,264  $ 10,491